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13 Cards in this Set
- Front
- Back
- 3rd side (hint)
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When are software development cost expensed under US GAAP? |
When the cost are incurred for R&D and before technological feasibility is established |
Q1.1 |
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Under US GAAP are research and development capitalized or expensed? |
R&D is expensed |
MCQ 1-6 |
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How is a pattern amortized (life of the pattern) under US GAAP? |
Choose the LESSER of the legal life or the economic life. |
MCQ 1-6 |
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True or False. Cost incurred for R&D contracted out to a third party are counted as expenses. |
True |
F2 1.13 |
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How are profits and losses accounted for in a completion of a contract method? |
Profits are delayed until completion of the contract and losses are recognized immediately in the period they occur |
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How does the installment sales method recognized revenue? |
It delays revenue as cash is collected. |
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What is another name for an asset's cash equivalent price? |
Asset's FV |
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What is a monetary asset? |
Assets that can readily be converted into a fixed amount of money. |
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What is a functional currency? |
The currency used in the primary economic environment where an entity operates. |
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What is the reporting currency? |
The currency used for an entity's financial statements |
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What is OCBOA (other comprehensive bases of accounting)? |
Non-GAAP financial presentations. It is an alternative to GAAP. |
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What are the OCBOA financial presentations? |
1. Cash basis 2. Modified cash basis of accounting 3. Tax basis 4. Regulatory basis of accounting |
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Define deferred revenue |
Revenue not yet earned by a company. It represents a liability |
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